It is all good and well to be across all financial aspects of a business, however, if you cannot apply these factors to the whole scope of the business, then what is the point? Discover why it is important for financial advisors to apply all of their financial knowledge and insights across all departments within the business.
Although it is completely normal and healthy for a business to be split up into several departments (such as sales, operations, marketing, etc), it is also important for all departments to be supporting one another and provide relevant insights that can help lift the business as a whole (after all, a business is run of teamwork right). Finance in particular is one of the key departments that can be supportive to all departments as essentially it is what keeps the business viable (as without funds, you cannot pay staff and without staff, the business will suffer to run successfully).
As much as the numbers are important, successful virtual CFOs need more than just numbers. Instead, they need to be able to turn their data into value, not only for the business but individually for each department too (making the value relevant to each specific department). By extracting maximum value from the data, virtual CFOs will be able to create specific intelligence that can help the business succeed and advance ahead of their competitors.
When in a meeting or discussing areas of improvement, provide advice from a financial point of view, even if the question wasn’t directed at you. As a financial officer, you will have the knowledge on how the business is going so why wouldn’t you apply that knowledge into other aspects of the business? At the end of the day, all departments of the business need to be working accordingly in order for the business to be successful overall.
Follow the performance through till the end
It is important for all financial business partners to not only provide insights and advice, but to monitor them and follow them right until the end. Why? Well what’s the point of implementing new tactics or advice if no one is going to monitor how they are going and make changes accordingly?
Conduct random audits
If you have provided advice to other departments within the business, ensure that you make yourself available at all times as the department heads may need further clarification later on down the track. Furthermore, try and conduct random audits on each department to ensure that they are tracking on ok, as sometimes, they may need that extra clarification but are too afraid to ask.
As a true financial business partner, the best way to gain further insight into the business is by asking questions. Start small and continuously dig deeper until you have enough knowledge to make informed decisions. In order to make informed decisions there are a few answers that need to be gathered first regarding:
- the environment in which the business operates within
- behaviour of the customers and those who interact with the business
- the capabilities of the business; what are its skills and strengths? Are there any areas for improvement?
- values and beliefs of the organisation; this will help you to make business decisions which are in line with the business’s core beliefs
- by obtaining answers to all of these factors, it will allow a true financial business partner to sustain their chances of achieving success and the original goals set.
Beyond Financials are the leaders in Virtual CFO services in Auckland, with their business analytics expertise and comprehensive end to end solutions, they are truly an invaluable partner for you and your business. Contact Beyond Financials for all CFO services and move your business in the right direction.